Which of the following statements are the assumptions of marginal costing?
1. Per unit selling price remain unchanged at all levels of operating activity.
2. Total fixed cost remains constant for all the production units.
3. Total variable costs varies in proportion to the volume of output.
4. All the elements of cost can be divided into fixed and variable components.
A. Both 1 and 2
B. Both 2 and 3
C. Both 1 and 4
D. All of the above
Answer: Option D
This Question Belongs to Management >> Management Accounting
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